I made the same mistake on Sunday at a VW dealers on the scrappage scheme. Although I paid a £500 deposit I hadn’t applied for the credit because I didn’t have my bank details.

2 days later I changed my mind and called them to say the bank had refused the loan application and that I no longer wanted to go ahead with the purchase. They were quite understanding and gave me my £500 back.

Hi - If the finance has not already been accepted......You're entitled to the full return of your deposit, if for any reason the car purchase that was dependant on a three way finance deal to proceed..... does not go ahead.

The finance deal is not binding until signed by all the parties, especially the authorised signatory at the finance providers offices, if you are met with resistance visit your local trading standards office.

Here's the story,

I went to a peugeot garage yesterday and chose a 207, i decided on finance with the scrappage scheme on my old car, my old car meets all of the criteria apart from the MOT running out on Friday, and the Tax Ran out yesterday.

they said it would be fine as they could just put the order date as friday in order to get around this. But it had to be done yesterday in order to do this, so i was under a timescale pressure.

I got home last night and decided i could not afford this finance deal, and rang today to cancel, however the salesman says that i cannot get back my £500 Deposit.

I gather that this was my fault, but they said they would refund it if i was declined finance, or if the scrappage scheme deal did not go through. could i go with the argument that they are not doing the scrappage part of the deal by the book, so if it were done correctly, my car would not qualify and so i could get back my deposit.

Any Help would be great thanks....